Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts. To Explain: Whether Company W use a periodic inventory system or perpetual inventory system.

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Answer 1

Question

Chapter 5, Problem 5.10APR

(1)

To determine

Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.

To Explain: Whether Company W use a periodic inventory system or perpetual inventory system.

(2)

To determine

To Prepare: The income statement of Company W for the year ended December 31, 2019.

3.

To determine

Closing entries: These refers to the journal entries that are recorded at the end of an each accounting period. It closes all revenue accounts earned, and all expenses account incurred during the current accounting year to the company’s capital account.

To Record: The closing entries of Company W.

4.

To determine

To Mention: The net income of W Company under the perpetual inventory system.

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Students have asked these similar questions

Company C had an estimated 185,000 direct labor hours, $594,000 manufacturing overhead, and 33,000 machine hours. The actual were 192,400 direct labor hours, 34,800 machine hours, and $612,000 manufacturing overhead. They determine overhead based upon machine hours. Calculate the predetermined overhead rate.

Determine the amount of manufacturing overhead

Please explain the solution to this general accounting problem with accurate explanations.

Answer 2

Question

Chapter 5, Problem 5.10APR

(1)

To determine

Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.

To Explain: Whether Company W use a periodic inventory system or perpetual inventory system.

(2)

To determine

To Prepare: The income statement of Company W for the year ended December 31, 2019.

3.

To determine

Closing entries: These refers to the journal entries that are recorded at the end of an each accounting period. It closes all revenue accounts earned, and all expenses account incurred during the current accounting year to the company’s capital account.

To Record: The closing entries of Company W.

4.

To determine

To Mention: The net income of W Company under the perpetual inventory system.

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Answer 3

Question

Chapter 5, Problem 5.10APR

(1)

To determine

Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.

To Explain: Whether Company W use a periodic inventory system or perpetual inventory system.

(2)

To determine

To Prepare: The income statement of Company W for the year ended December 31, 2019.

3.

To determine

Closing entries: These refers to the journal entries that are recorded at the end of an each accounting period. It closes all revenue accounts earned, and all expenses account incurred during the current accounting year to the company’s capital account.

To Record: The closing entries of Company W.

4.

To determine

To Mention: The net income of W Company under the perpetual inventory system.

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Answer 4

Question

Chapter 5, Problem 5.10APR

(1)

To determine

Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.

To Explain: Whether Company W use a periodic inventory system or perpetual inventory system.

(2)

To determine

To Prepare: The income statement of Company W for the year ended December 31, 2019.

3.

To determine

Closing entries: These refers to the journal entries that are recorded at the end of an each accounting period. It closes all revenue accounts earned, and all expenses account incurred during the current accounting year to the company’s capital account.

To Record: The closing entries of Company W.

4.

To determine

To Mention: The net income of W Company under the perpetual inventory system.

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Answer 5

Chapter 5, Problem 5.10APR

(1)

To determine

Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.

To Explain: Whether Company W use a periodic inventory system or perpetual inventory system.

(2)

To determine

To Prepare: The income statement of Company W for the year ended December 31, 2019.

3.

To determine

Closing entries: These refers to the journal entries that are recorded at the end of an each accounting period. It closes all revenue accounts earned, and all expenses account incurred during the current accounting year to the company’s capital account.

To Record: The closing entries of Company W.

4.

To determine

To Mention: The net income of W Company under the perpetual inventory system.

Answer 6

Chapter 5, Problem 5.10APR

(1)

To determine

Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.

To Explain: Whether Company W use a periodic inventory system or perpetual inventory system.

Answer 7

Chapter 5, Problem 5.10APR

(1)

To determine

Multi step income statement: A multiple step income statement refers to the income statement that shows the operating, and non-operating activities of the business, under separate head. In different steps of the multi-step income statement, principal operating activities are reported that starts from the record of sales revenue with all contra sales revenue account like sales returns, allowances and sales discounts.

To Explain: Whether Company W use a periodic inventory system or perpetual inventory system.

Answer 8

(2)

To determine

To Prepare: The income statement of Company W for the year ended December 31, 2019.

Answer 9

(2)

To determine

To Prepare: The income statement of Company W for the year ended December 31, 2019.

Answer 10

3.

To determine

Closing entries: These refers to the journal entries that are recorded at the end of an each accounting period. It closes all revenue accounts earned, and all expenses account incurred during the current accounting year to the company’s capital account.

To Record: The closing entries of Company W.

Answer 11

3.

To determine

Closing entries: These refers to the journal entries that are recorded at the end of an each accounting period. It closes all revenue accounts earned, and all expenses account incurred during the current accounting year to the company’s capital account.

To Record: The closing entries of Company W.

Answer 12

4.

To determine

To Mention: The net income of W Company under the perpetual inventory system.

Answer 13

4.

To determine

To Mention: The net income of W Company under the perpetual inventory system.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 5 - Prob. 1DQ Ch. 5 - Prob. 2DQ Ch. 5 - The credit period during which the buyer of...Ch. 5 - What is the meaning of (A) 1/15, n/60; (B) n/30;...Ch. 5 - Prob. 5DQ Ch. 5 - Prob. 6DQ Ch. 5 - Who is responsible for freight when the terms of...Ch. 5 - Name three accounts that would normally appear in...Ch. 5 - Audio Outfitter Inc., which uses a perpetual...Ch. 5 - Assume that Audio Outfitter Inc. in Discussion...

Solution Summary: The author explains that a multi-step income statement shows the operating, and non-operating activities of the business under separate heads.

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To Prepare: The income statement of Company W for the year ended December 31, 2019.

To Mention: The net income of W Company under the perpetual inventory system.

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Chapter 5 Solutions